Crypto Liquidations Surpass $712 Million in 24 Hours

Market context and liquidity figures

According to CoinGlass, total liquidity in the past 24 hours reached $712 million, with the majority (around 73-87% according to recent reports) coming from long positions. Of which:

• Bitcoin (BTC) led the way with around $211.21 million in liquidations, reflecting heavy selling pressure as BTC prices fell below the $102,000 mark, hitting an intraday low of $100,700.

• Ethereum (ETH) recorded $112.53 million in liquidations, followed by Solana (SOL) with $31.69 million, XRP with $29.42 million, and Dogecoin (DOGE) with $21.39 million.

• Major exchanges like Binance, Bybit, and OKX were hit hard, with Binance recording the largest single liquidation order worth $20.8 million on the BTC/USDT pair.

The cryptocurrency market capitalization fell 2.6% in 24 hours to $3.34 trillion on May 30, 2025, after breaking through a key support level at $3.35 trillion. This shows widespread negative sentiment, despite positive signals from macroeconomic data.

Positive US inflation signals

Recent US inflation data, specifically the consumer price index (CPI), showed inflation remained at 2.4% in April 2025, the same as the previous month.

One notable point is that the “super core” index (core inflation minus housing) fell to a four-year low of 2.9% compared to 3.8% in February 2025, signaling a deflationary trend in price pressures.

Under normal circumstances, such a positive inflation report would typically spark bullish sentiment in risk markets like cryptocurrencies, as it raises expectations of loose monetary policy from the Federal Reserve (Fed).

However, the crypto market did not react as positively as expected. The main reason is the prevailing “risk-off” sentiment, triggered by other geopolitical and macroeconomic factors, especially the trade tensions between the US and China.

Impact of US-China tariffs: A shock to the market

The main reason for this round of liquidation and decline in market capitalization comes from the escalation of trade tensions between the US and China.

Trade talks between the two countries have reached a stalemate, as confirmed by US Treasury Secretary Scott Bessent on May 29, 2025, raising concerns about rising inflation in the future.

The tariffs, which include a 25% levy on goods from Canada and Mexico, and a 10% levy on goods from China, scheduled to take effect as early as March 2025, have rocked global financial markets.

Why did the market react negatively?

While positive inflation data is usually a good sign for the crypto market, this time the impact of US-China tariffs has overshadowed the positive factors. Here are the arguments to explain:

After Bitcoin recently peaked at $111,800, many traders used high leverage to bet on the upside. When the price suddenly dropped due to the tariff news, these positions were liquidated en masse, causing a domino effect.

Cryptocurrencies have become increasingly correlated with risk assets like tech stocks (Nvidia, Tesla). When these markets decline due to inflation concerns, cryptocurrencies are also under similar pressure.

The stalled US-China talks have increased uncertainty, causing investors to turn to safe-haven assets like gold or the US dollar, instead of cryptocurrencies.

Conclusion and outlook

The liquidation of over $712 million in the past 24 hours is a testament to the volatility of the cryptocurrency market in the face of macroeconomic and geopolitical factors. Despite positive U.S. inflation data, pressure from tariff policies and concerns about long-term inflation have pushed the market into a “risk-off” state, leading to a decline in capitalization and mass liquidations.

In the short term, traders should pay attention to the upcoming US CPI report and developments in US-China trade negotiations. A lower-than-expected CPI report could ease market sentiment, while any signs of an escalation in trade tensions could continue to put pressure on crypto prices. In the long term, the market needs a stronger catalyst, such as clarity on the Fed's monetary policy or supportive regulations for cryptocurrencies, to restore momentum.

Once again we give our opinion on potential projects in the crypto market. This is not investment advice, consider your portfolio. Disclaimer: The views expressed in this article are solely those of the author and do not represent the platform in any way. This article is not intended to be a guide to making investment decisions.

Compiled and analyzed by HCCVenture

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